doingbusiness

Doing Business with DND/CF: 

Doing Business with DND/CF Victoria Edwards Aboriginals and the Canadian Military: past, present, future

Introduction: 

Introduction 1. Identify barriers to doing businesses with DND/CF 2. Identify potential opportunities for Aboriginal businesses 3. Suggest how to promote procurement opportunities to Aboriginal businesses 4. Recommendations

The Ancien Regime (17th Century): 

The Ancien Regime (17th Century) Moccasins Snowshoes Canoes Buckskin hunting shirt Buckskin leggings Tomahawk Indian costume War paint “To survive, French and English colonists had to master the Indian way of war”… “Colonists rapidly adopted the tools and equipment of Indian warfare” Desmond Morton, A Military History of Canada Frontier soldiers adopted:

Timeline: 

Timeline Timeline of the important historical events in federal procurement with Aboriginal businesses

Defence Commitments: 

Defence Commitments To open procurement opportunities to Aboriginal suppliers To enhance their development activities. http://www.vcds.forces.gc.ca/dgsp/pubs/rep-pub/ddm/dpr2004/sec4b3_e.asp

Environmentally Sustainable Defence Activities: 

Environmentally Sustainable Defence Activities The Defence Strategic Development Strategy links to other internal strategies and programs that further the principles of sustainable development. e.g. Defence participation in the "Procurement Strategy for Aboriginal Business,“ provides social and economic spin-offs to aboriginal business development. National Defence Sustainable Development Strategy 2003 Environmentally Sustainable Defence Activities www.forces.gc.ca/admie/dge/sds/sds2_e.htm

Barriers to Doing Business (with DND/CF): 

Barriers to Doing Business (with DND/CF) Low awareness in CF Few defence suppliers Eligibility Certification Capacity Procurement Community support Promote Aboriginal firms within the DND/CF procurement community Contracts to grow steadily over the next 10 years

Barriers to Doing Business (with DND/CF): 

Barriers to Doing Business (with DND/CF) Key Mitigation Strategies Develop database of Aboriginal firms Encourage partnerships/Joint ventures Use capacity development tools Audit/enforce/tighten Aboriginal business identity provisions Adopt communications strategy Public servants/CF members Aboriginal businesses

DND Contracts In Support of the Procurement Strategy for Aboriginal Business: 

DND Contracts In Support of the Procurement Strategy for Aboriginal Business The Procurement Strategy for Aboriginal Business (PSAB) is a federal government initiative designed to help develop Aboriginal business. Comprehensive land claims agreements in place with Aboriginal groups contain contracting obligations applicable to federal government contracting. These obligations apply when buying goods and services for delivery in areas of the country that are subject to the agreements. DAOD- Contracting 2000-03-27 applies to CF members & DND employees http://www.admfincs.forces.gc.ca/admfincs/subjects/daod/3004/1_e.asp

DND Contracts In Support of the Procurement Strategy for Aboriginal Business: 

DND Contracts In Support of the Procurement Strategy for Aboriginal Business These obligations take precedence over North American Free Trade Agreement (NAFTA), World Trade Organization Agreement on Government Procurement (WTO-AGP), Canadian Agreement on Internal Trade (AIT). DAOD- Contracting 2000-03-27

DND Contracts In Support of the Procurement Strategy for Aboriginal Business: 

DND Contracts In Support of the Procurement Strategy for Aboriginal Business Under the PSAB, there are two types of set-asides for contracting. mandatory set-asides that apply to goods and services of $5K and more targeting Aboriginal populations. Voluntary set-asides are all other purchases reserved by departments for Aboriginal businesses. DAOD- Contracting 2000-03-27 applies to CF members & DND employees http://www.admfincs.forces.gc.ca/admfincs/subjects/daod/3004/1_e.asp

Various measures encourage Aboriginal businesses to pursue federal contracts: 

Various measures encourage Aboriginal businesses to pursue federal contracts Set Asides Sub-contracting Joint Ventures Voluntary & mandatory set asides Promote sub-contracting to Aboriginal firms Encourage Aboriginal firms to form joint ventures with other businesses.

Slide13: 

Department’s Role (e.g. DND) Procurement Strategy for Aboriginal Business www.ainc-inac.gc.ca

Slide14: 

DND Contracts to Aboriginal Firms Under PSAB 2002-2004 Departmental Performance Reports, 2002-2005

DND Support for Aboriginal Business in 2002: 

DND Support for Aboriginal Business in 2002 DND/CF held: “Procuring Success: A Trade Show for Aboriginal Business” Permitted Aboriginal firms to present goods & services to DND/CF Received positive response by Aboriginal businesses, DND/CF participants and other federal departments Departmental Performance Report 2003 http://www.vcds.forces.gc.ca/dgsp/pubs/rep-pub/ddm/dpr2003/pc_e.asp

Slide16: 

DND Contracts to Aboriginal Firms in 2004 DND Dept Performance Report 2005

Slide17: 

Tsuu T'ina Nation In 1994, DND awarded a contract to Wolf Flats Ordnance Disposal Corporation (Tsuu T'ina Nation) for environmental clean-up of the land (former CFB Calgary) The work, over 10 years, had a value of over $66 million The goal is to return the land to Tsuu T'ina Nation in a condition suitable for residential use by the fall of 2006. http://www.forces.gc.ca/site/newsroom/view_news_e.asp?id=1350 DND Support for Aboriginal Business

Slide18: 

DND Support For Aboriginal Business

DND Support for Aboriginal Business: 

DND Support for Aboriginal Business Six Nations In 1998, DND awarded a $168,000 publishing service contract to the Six Nations-based Aboriginal firm, Sixdion Inc. Sixdion Inc. was also awarded a subcontract from Bombardier Services, through a business alliance, for further publishing services that is worth approximately $3.36 million. This work for the production of Canadian Forces publications over 3 years had a total value of approximately $3.528 million. http://www.forces.gc.ca/site/newsroom/view_news_e.asp?id=842

DND Support for Aboriginal Business: 

DND Support for Aboriginal Business Labrador Inuit In 2002, DND awarded a $2.9M contract to Torngait Services Incorporated The work, over 2 years, involved establishing a temporary camp and providing catering, housekeeping and maintenance activities for on-site personnel of the Saglek PCB contaminated soil cleanup project (Long Range Radar site at Saglek, Labrador) http://www.forces.gc.ca/site/Newsroom/view_news_e.asp?id=335

Recommendations: 

Recommendations PSAB is necessary but not sufficient for stimulating Aboriginal business development; Need enhanced data collection that will lead to useful performance measures e.g. demographics of Aboriginal businesses; Reduction in “shell companies” and more opportunities for Aboriginal businesses; A central database of Aboriginal firms for buyers is an essential tool.

Bibliography: 

Bibliography D.Morton “A Military History of Canada” 4th Edition 1999 p4 Procurement "set aside" for minority & small businesses North American Free Trade Agreement (NAFTA) World Trade Organization Agreement on Government Procurement (WTOAGP) Treasury Board Contracting Policy Notices Procurement Strategy for Aboriginal Business: Guidelines for Buyers-Government Officials - 1997-6 Aboriginal Business Procurement Policy - 1996-l0 Aboriginal Business Procurement Policy Performance Objectives - 1996-6 Aboriginal Business Procurement Policy and Incentives - 1996-2 National Defence Procurement Administration Manual (PAM)

Doing Business with DND/CF: 

Doing Business with DND/CF Victoria Edwards Aboriginals and the Canadian Military: past, present, future

Typical Ways to Identify Suppliers: 

Typical Ways to Identify Suppliers To find businesses that can supply DND/CF with the goods, services, and construction needed MERX Advertise in newspapers Refer to their source lists

Identify Aboriginal Suppliers: 

Identify Aboriginal Suppliers To find Aboriginal businesses that can supply DND/CF with the goods, services, and construction you need Contracts Canada’s Supplier Registration Information (SRI) Industry Canada’s Strategis, Aboriginal Business Directory DND Supplier Database

THE PSAB – What Is It?: 

THE PSAB – What Is It? GOC Procurement policy (April 1996) Applies to all federal government departments Annual Departmental Performance Objectives for departments with procurement budgets >$1m Regulatory Regime - CAC audits to ensure compliancy Self-certification by firms

Slide27: 

What is the PSAB?

Eligibility: 

Eligibility The PSAB is open to all Aboriginal businesses. sole proprietorship, limited company, co-operative, partnership, or not-for-profit organization When a firm bids for a contract under the PSAB, it must: certify that it meets the following criteria, and provide proof of eligibility upon request. Indian and Northern Affairs Canada (INAC) exercises the right to audit Aboriginal supplier certifications. Eligibility criteria (Aboriginal business) at least 51% of firm is owned & controlled by Aboriginal people & at least 1/3 of firm's employees, if it has 6 or more full-time staff, must be Aboriginal. Eligibility criteria (Joint Venture or Consortium) at least 51% of joint venture or consortium must be controlled & owned by an Aboriginal firm or firms, as defined above.

Roles of Key Players: 

Roles of Key Players PWGSC Awareness Advise Set asides MSOs Treasury Board Reporting Finance Policy Relationship Training

Slide30: 

DND Contracts to Aboriginal Firms in 2003 DND Dept Performance Report 2004